US Dollar Index preparing to push higher towards 95.00/96.00

Written by Finacademy.io

June 18, 2021

Technical Analysis:

US Dollar Index has raised through 92.00 levels as of now and bulls are looking poised to extend further through 95.00, 96.00 levels in the next few weeks. It is quite possible that they continue higher from here itself or after a pullback, but prices stay above 89.60 levels.

The index had dropped lower since 103.00 highs since March 2020, and managed to print lows around 89.20 levels in January 2021. Since then, it has remained in control of bulls and managed to push through 93.40 levels before pulling back.

Looking at the larger degree wave structure, US Dollar Index seems to have carved larger degree Waves (1) and (2) around 93.40 and 89.55 levels respectively. If the above holds well, bulls might be poised to push through 95.00/96.00 levels, going forward.

Also note that Wave (2) had dropped through fibonacci 0.786 retracement of Wave (1), which is a common guideline. If the above structure holds well, we might see the rally extending higher from here as Wave (3) accelerates.

Most traders might want to hold long positions initiated earlier with risk just below 89.50 levels. It is quite possible for the rally to extend through 100.00 levels in the next several weeks.

Prepared by

Finacademy Technical Team

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